Question & AnswerQ&A (COA Resolution NO. 2011-014)
The Leagues of LGUs created under R.A. No. 7160 include the Liga ng mga Barangay, League of Municipalities, League of Cities, and League of Provinces.
The Liga ng mga Barangay is classified as a government organization, being an association, federation, league or union created by law or by authority of law, whose members are either appointed or elected government officials.
The Supreme Court rulings in Bito-Onon vs. Fernandez, et al. (G.R. No. 139813, dated January 31, 2001) and National Liga ng mga Barangay, et al., vs. Paredes, et al. (G.R. No. 130775, dated September 27, 2004) adopted DOJ Opinion No. 41.
Funds of the Leagues of LGUs should be derived from contributions of member LGUs and from fundraising projects. All funds shall be deposited as trust funds with its treasurer and disbursed according to board of directors' resolutions, subject to accounting and auditing rules and regulations.
They may derive funds from contributions of individual members or from fundraising projects or activities. The LGU concerned may also appropriate funds to support these leagues or federations subject to availability of funds.
The COA has the power, authority, and duty to examine, audit, and settle all accounts pertaining to revenue, receipts, expenditures, or uses of funds and property owned or held in trust by or pertaining to the Government or its subdivisions, agencies, or instrumentalities.
The Leagues of LGUs and the Leagues and Federations of Local Elective Officials are subject to the audit jurisdiction of the Commission on Audit.
The resolution took effect immediately upon its adoption on December 13, 2011.
They are created under Title VI, Book III of Republic Act No. 7160, the Local Government Code of 1991.
Yes, LGUs can appropriate funds to support such leagues or federations, subject to the availability of funds as provided under Section 510, Chapter II, Title VI, Book III of R.A. No. 7160.